Fee Categories

A lawyer's or paralegal's status and associated category determines whether he or she is obliged to pay fees and the amount of the annual fee. Those with a fee-paying status may pay a reduced fee for parental leave.

There are also fee exemptions for those who qualify based on years of practice, age or incapacity (By-Law 5).

It is the lawyer's or paralegal's responsibility to notify the Law Society immediately regarding a change in status. A change of status may result in a refund.

Fee-paying Statuses and CategoriesThere are eleven fee paying statuses and three associated categories which determine the percentage of the annual fee that is due:

Fee-paying Statuses and Categories

Status

Description

Applicable Fee Categories*

1A

Sole Practitioner in Ontario

100%

1B

Partner in a Professional Business in Ontario

100%

1C

Employee in a Professional Business in Ontario

100%

1D

Associate in a Professional Business in Ontario (practising in the manner of an employed lawyer)

100%

1E

Employed in Education in Ontario

100% or 50%

1F

Employed in Government in Ontario

100% or 50%

1G

Otherwise Employed in Ontario

50%

1H

Not Working

25%

1I

Not in Ontario

100%, 50% or 25%

1J

Corporate Counsel

100%

1K

Legal Clinic Lawyer/Paralegal

100% or 50%

* Parental leave (25% fees) may be applicable to all categories except H. There are no reduced fees for part-time work.

Explanation of Categories

100% of Annual Fee - Lawyers or paralegals who practise law or provide legal services, whether they do so in Ontario or in some other part of the world, including law teachers who practise or provide legal services, or federal, provincial and municipal government, corporate employees and other lawyers or paralegals who provide legal advice, opinions, or services with respect to the laws of Ontario or Canada.

50% of Fee - Lawyers or paralegals who do not practise law or provide legal services, including those employed in education, in government or in a corporation in a position where not required to practise law or provide legal services.

25% of Fee - Lawyers or paralegals who do not engage in any remunerative work and do not engage in the practise of law or provision of legal services in or outside of Ontario, or who are in full-time attendance at a university, college or designated educational facility and not practising law or providing legal services, or who are on pregnancy or parental leave and who do not practise law or provide legal services.

By-Law 5 outlines the requirements for the amount payable and the required due date.

Parental LeaveThe Law Society makes special provisions for parental leave, which is defined as leave from employment or practice for reasons of maternity, paternity or adoption. Under this policy, lawyers or paralegals may apply for a reduction in the fee to the 25% category for each full month for which parental leave is taken.

Exemptions from Requirement to Pay the Annual FeeThere are several non-fee paying statuses as a result of exemptions (see below). Additionally, lawyers appointed to judicial office and suspended lawyers or paralegals do not pay fees.

Automatic Fee Exemption - 50 years - This status is granted by the Law Society to lawyers and paralegals who have been entitled to practise in Ontario for a continuous period of 50 years. No application is necessary.

Fee Exemption at age 65 - Lawyers and paralegals who are 65 years of age and over, and permanently retired from the practise of law or provision of legal services are exempted from the annual fee under By-Law 5. For more information, please click here.

Incapacity - Lawyers and paralegals who are incapacitated and therefore unable to practise law or provide legal services may be exempt from the annual fee under By-Law 5. For more information, please click here.

Appointment to Judicial OfficePursuant to section 31(1) of the Law Society Act, lawyers or paralegals may have their licence placed in abeyance under certain situations. While their licence is in abeyance, they are exempt from the payment of the Annual Fee and from filing the Annual Report.

To have their licence placed into abeyance, lawyers and paralegals must write to the Law Society's Membership Services department and advise of the date they stopped practising or providing legal services (if applicable) and the date they were appointed, along with any changes to their mailing or contact information. A copy of the Order in Council is also required as proof of the appointment.

Eligible lawyers and paralegals include those who are appointed as:

full-time judges of any federal, provincial or territorial court,

full-time masters of the Superior Court of Justice,

full-time case management masters, or full-time prothonotaries of the Federal Court of Canada;

full-time members of the Ontario Municipal Board

Restoration of LicenceUpon ceasing to hold office as described above, lawyers and paralegals may restore their licence by writing to the Membership Services department and advise of the date they stopped holding office, what they intend to do upon restoration of their licence and also advise of any changes to their mailing or contact information.

Once their licence is restored, lawyers and paralegals become responsible for payment of the Annual Fee and filing the Annual Report if they return to an active status.

Lawyers or paralegals who are 65 or older may choose to be placed directly into a retired status if they do not intend to resume the practice of law.

Status ChangesIt is the lawyer's or paralegal's responsibility and obligation to notify the Law Society immediately of any change in status, including the effective date. Changes may be reported by completing and faxing the

Lawyers or paralegals changing from or closing down a private practice will be contacted by the Law Society to confirm the location of client files and status of trust funds. The Law Society receives thousands of calls annually from clients trying to locate their former lawyers/paralegals and their files. The Law Society's status change package is designed to ensure that the Law Society's records appropriately reflect the state of current and former lawyers/paralegals files and client accounts to enable the proper direction of enquiries.

Refunds If a lawyer or paralegal becomes entitled to a pro-rata reduction of the fee as aresult of a change in status, By-Law 5 provides the formulas for the calculation for the adjustment to the fee. If entitled to a refund as a result of the adjustment, subsection 3 (6) provides that "A licensee shall apply to the Society to claim an entitlement to a refund...". Applications should be made by contacting the Client Service Centre.

There is a deadline for making the application for a refund. Subsection 3(7) provides that "An application to the Society under subsection (6) shall be made before the end of the year in respect of which the licensee claims an entitlement to a refund under subsection (5)." Subsection 3(8) provides that "A licensee who does not comply with subsection (7) is not entitled to receive a refund."

In order to protect the interests of lawyers and paralegals, a refund issued to a third party requires the written consent of the lawyer or paralegal.